Sundaram Finance (SUNDARMFIN) Q4 17/18 earnings summary

Executive summary

• Standalone FY18 profit after tax was ₹532.95 cr; like-for-like growth was 15.95% after adjusting prior-year profit for the demerger. Figures are not strictly comparable following amalgamations and the composite scheme.

• Disbursements rose 18% to ₹15,632 cr and receivables under management rose 19% to ₹28,648 cr, alongside lower gross and net NPAs.

Financial highlights

• Standalone revenue from operations was ₹2,618.29 cr and total revenue ₹2,696.34 cr; PAT was ₹532.95 cr versus ₹495.35 cr in FY17.

• Standalone EPS was ₹47.97 versus ₹44.58; PBT was ₹806.79 cr versus ₹720.20 cr.

• Consolidated revenue was ₹6,104.51 cr versus ₹5,596.38 cr; PAT was ₹711.54 cr versus ₹683.48 cr.

• Consolidated EPS was ₹64.04 versus ₹61.52; PBT was ₹1,163.40 cr versus ₹1,022.16 cr.

Outlook and guidance

• SIAM projected FY19 commercial vehicle sales growth of 10–12%, passenger vehicles 8–10%; CRISIL projected tractor growth of 11–13%, conditional on normal monsoon and greater government support.

• Infrastructure spending, rural demand, construction equipment, LCVs and tractors were identified as growth opportunities; plans prioritize core markets and product segments.

• Higher rates and competition may pressure margins; the plan was to manage yields through an appropriate mix of higher- and lower-yielding assets while maintaining asset quality.